Business Finance -II

Syllabus

6T6.1- Business Finance – II

Unit – I

Financial Market in India: Significance of Financial Markets, Objectives and

functions of the financial System, Types of Financial Markets.

Money Market- Meaning , Features, Functions, Composition

Capital Market- Meaning , Composition & Structure of Capital Market Market segment. Products and Participant’s in Primary market. Regulatory Authorities Governing Financial and Capital Market.

SEBI - (Security Exchange Board of India) Organisational Structure of SEBI,

Role and Functions of Stock Exchange and SEBI, Regulation issued by SEBI,

Achievements of SEBI. (Theory)

Unit – II

Primary Market: Meaning, Functions, Scope & Significance of Primary Market, Developments in the Primary Market, Primary Market Intermediaries.

Secondary Market: Meaning , Difference between Primary Market & Secondary Market, Products dealt in the Secondary Market, Stock Exchange, Secondary Market Intermediaries. Listing Procedure. NSE and BSE. (Theory)

Capital Budgeting - Meaning, Nature and Importance of Capital Budgeting, Investment Appraisal Techniques, Pay Back Period Method, Rate of return method, Net Present Value Method, Discounted Cash Flow Method, (Theory & Numericals)

Unit – III

NBFC’s- Meaning, Formation of NBFC’s , Types and Regulation of NBFC’s,

Credit Rating: Meaning /Concept, Scope & Significance of credit rating, Benefits to Investors. Credit Rating Agency in India CRISIL, ICRA, CARE. (Theory)

Dividend Policies- Essentials of Sound Dividend Policy, Determination of

Dividend Policy and its types ,Surplus and Reserve Policy, (Theory & Numericals)

Unit –IV

Cash Flow for Investment Analysis- Meaning, Benefits and Uses of Cash Flow Statement. Significance ,Limitations of Cash Flow Statement. Format of Cash Flow Statement as per AS-3. (Theory & Numericals